Another AI startup to hit the science and technology innovation board!Interpretation of Geling’s IPO, plans to raise 1 billion yuan

Smart things (public account: zhidxcom) Author | Chang Yang Edit | Heart Fate Zhixi reported on June 23 that yesterday, the AI ​​startup Beijing Geling Shentong Information Technology Co., Ltd. (hereinafter referred to as “Gling Shentong”) IPO was accepted. The main business of Geling Deep Eye is to deeply integrate computer vision technology, big data analysis technology and application scenarios, and provide artificial intelligence products and solutions for urban management, smart finance, commercial retail, sports health, rail transit operation and maintenance, etc. . Founded in 2013, Geling Deep Eye, independently researched and developed artificial intelligence products mainly include Zhiyuan intelligent front-end products, Lingxi data intelligence platform and Deep Eye industry application platform. These artificial intelligence products can be sold individually, or according to customer needs, the above products can be combined to deliver to customers in the form of overall industry solutions. Geling’s revenue has grown rapidly. From 2018 to 2020, the average annual compound growth rate is 116.12%, and the total revenue in 2020 is 243 million. The actual controller of Geling Shentong is the founder, chairman and general manager Zhao Yong. Its actual control of Shentong Zhishu is the largest shareholder of Geling Shentong, holding 22.53% of the equity. According to the prospectus, the company’s total share capital before the issuance was 138,735,614 shares, and the planned public offering of this time will not exceed 46,245,205 shares, which is not less than 25.00% of the total share capital of 184,980,819 shares after the issuance. Geling Shentong plans to raise 1 billion yuan in the public offering of new shares to the public. After deducting the issuance cost, it will invest in artificial intelligence algorithm platform upgrade projects, artificial intelligence innovation application research and development projects, and marketing service system upgrade construction projects in order of priority. Projects and supplementary working capital. 1. Total revenue in 2020 will exceed 240 million, and Zhiyuan smart front-end products account for 69.71% According to the prospectus, the total revenue of Geling Shentong from 2018 to 2020 will be 5,196,500 yuan, 71,210,700 yuan, and 242.7156 million yuan, with an average annual compound growth rate of 116.12%. In terms of net profit, Geling Shentong is still at a loss. From 2018 to 2020, the company’s net profit will be -74,565,500 yuan, -41,758,32 million yuan, and -78,201,600 yuan. ▲2018-2020 revenue and net profit Combining the business characteristics of the downstream industry and the market positioning of the main products, Geling Shentong has formulated a direct sales sales model to directly sell artificial intelligence products and solutions to end customers or integrator customers. ▲A map of the company’s artificial intelligence products and solutions The main business of Geling Shentong can be divided into Zhiyuan intelligent front-end products, Lingxi data intelligence platform and Shentong industry application platform according to products. In 2018, Lingxi data intelligent platform products accounted for the highest proportion of main business revenue, at 66.90%, and Zhiyuan smart front-end products accounted for the largest proportion of main business revenue from 2019, 47.88% in 2019, and proportion in 2020 Continue to increase to 69.71%. ▲The proportion of revenue of each business from 2018 to 2020 (by product) During the reporting period, the company’s main business income came from products and solutions in the three major application areas of city management, smart finance and commercial retail. The total sales revenue in the areas of urban management and smart finance accounted for 95.47%, 86.61% and 83.03% of the company’s main business revenue, respectively, which are the company’s main sources of income. City management products account for the highest proportion, consistently above 51%. Although the proportion of commercial retail products and solutions is the smallest, it has been increasing. In 2018, the proportion of commercial retail business revenue was only 4.52%, and it will increase to 16.97% in 2020. ▲The proportion of business revenue from 2018 to 2020 (by application field) According to public information disclosed by comparable companies in the same industry, Yitu Technology, Yuntian Lifei, Megvii Technology and Geling Shentong have similar business income in the above-mentioned business areas. From the average of each company, its similar business gross profit margin is close to that of Geling Shentong’s main business. ▲Comparison of the gross profit margin of Geling Deep Pupil from 2018 to 2020 with comparable companies in the same industry According to the prospectus, the main clients of Geling Shentong include Agricultural Bank of China, Shang Boxin, Net Power, CICC Yinli, Yihualu, Chaoyang Development and Reform Commission, COSCO Shipping, China Science and Technology, Zhongtong Service, Jinbang Ronghe, Yintaijin Acer 11 homes. Agricultural Bank of China has always been the top five customers of Geling Shentong, especially in 2019 and 2020, the sales amount accounted for the highest proportion of the current main business income, which were 33.47% and 19.36% respectively. ▲The top five customers of Geling Deep Eye from 2018 to 2020 In terms of procurement, the company’s required raw material procurement is mainly divided into standard hardware procurement, customized hardware procurement, service procurement and supporting software and hardware procurement. The main suppliers of Geling Shentong are Zongli Technology, Hikvision, Ruichuang Micronano, Siteng Heli, Urumqi Tianli Xintong Information Equipment Co., Ltd., Chengdu Jinkexin Technology Development Co., Ltd., Shenzhen Aobi Zhongguang There are 10 companies including Tianjin Science and Technology Co., Ltd., Tianjin Stone Chuangyuan Technology Co., Ltd., Beijing Shenzhou Tianyang Technology Development Co., Ltd., and Guangzhou Jiu’an Intelligent Technology Co., Ltd. Siteng Heli has always been the top 5 suppliers of Geling Shentong, mainly supplying standard hardware, but from 2018 to 2020, the proportion of the purchase of Siteng Heli in the current purchase amount has gradually decreased. ▲2018-2020 Top 5 Suppliers of Geling Deep Pupil 2. R&D investment exceeds 77% of revenue, and R&D personnel account for 55.51% Geling Shenpu has mastered the core technology in the field of computer vision, and formed artificial intelligence products and solutions for multiple fields on this basis. In the field of computer vision technology and subdivided applications, the main competitors of Geling Shentong are Shangtang Technology, Megvii Technology, Yuncong Technology, Yitu Technology, Yuntian Lifei, Rainbow Soft Technology, and Danghong Technology. The total R&D investment of Geling Shentong in the last three years totaled 283,087 million yuan, exceeding 60 million yuan, accounting for 77.37% of the cumulative operating income in the last three years. Compared with the same industry, it is at an intermediate level. The company has 146 R&D personnel, accounting for 55.51% of the total number of employees. Among them, 67 people have a master’s degree or above, accounting for 45.89% of R&D personnel. The core technical team of Geling Shentong consists of 7 people, namely Zhao Yong, Zhou Rui, Li Xinghua, Feng Jianshuai, Feng Ziyong, Hu Kaixian, Luo Kai. Among them, Zhao Yong is the founder, chairman and general manager of the company, and once worked in the Google Headquarters Research Institute. , Participated in the early research and development of Google Glass and the design of image processing architecture in the Android operating system. As of the end of the reporting period, Geling Shentong Company has obtained 28 patent authorizations, including 18 invention patent authorizations and 74 software copyrights. Compared with comparable companies in the same industry, the number of patents is relatively small. ▲Comparison between Geling Deep Eye and other companies in the industry Geling Deep Pupil has created the underlying AI technology platform-Deep Pupil Brain. Deep Pupil Brain, as the driving platform of the company’s core technology, empowers the company’s technical realization of artificial intelligence products and solutions. The deep pupil brain includes a data platform and a training platform, which are composed of modules such as data collection, data preprocessing, data labeling, model training, model optimization, and data management. ▲The company’s core technology system based on Deep Pupil Brain In terms of the core algorithm technology of artificial intelligence, the company and comparable companies in the same industry are relatively close in the industry’s general algorithm capabilities, and the artificial intelligence algorithm capabilities of comparable companies in the same industry have reached the level of large-scale application. ▲Comparison of Geling Deep Eye with other companies in the industry in terms of core technology 3. The actual control of founder Zhao Yong, the highest shareholding ratio Before this issuance, the founder, Zhao Yong, directly or indirectly controlled 36.19% of the voting rights of the company through Shentong Zhishu, Lingtong Zhongzhi, Lingtong Laike, Lingtong Zhiyuan and Lingtong Shuyuan, and was the actual controller of the company. ▲The equity structure of Geling Deep Pupil Among them, Shentong Zhishu, the actual controller is Zhao Yong, who directly holds 22.53% of the shares of Geling Shentong, ranking first. Lingtong Zhongzhi, Lingtong Laike, Lingtong Zhiyuan, and Lingtong Shuyuan are all employee shareholding platforms of Geling Deep Eye. The executive partner of these four companies is Zhao Yong, who directly holds Geling Deep Eye 6.86 %, 2.73%, 2.52% and 1.55% of the equity, the total shareholding ratio is 13.66%, ranking third. The second largest shareholder of Geling Shentong is Sequoia Capital, which holds 13.99% of the equity. ▲List of the top 10 shareholders of Geling Shentong Concluding remarks: The application is widely implemented, and Geling Shentong still wants to go public and raise stocks for research and development The artificial intelligence products and solutions provided by Geling Shentong have been recognized by many customers, and the number of customers in various fields has grown rapidly. The field of urban management has covered the public security bureaus, public security and transportation administrations and other government agencies or enterprises in many provinces and cities across the country; the smart finance field has covered thousands of branches of the Agricultural Bank of China in all provinces and cities; the commercial retail field has covered Sinopec, Many well-known domestic and foreign companies such as Hyundai Motor. The total revenue of Geling Shentong in 2020 has exceeded 240 million. However, due to the long R&D cycle and large R&D investment of artificial intelligence algorithms and technologies, it has implemented multiple employee equity incentives to attract talents. The company’s revenue is small and still in Due to the rapid development period and other reasons, the company’s net profit continued to be negative. The R&D investment in the past three years has accounted for 77.37% of the cumulative operating income, and the purpose of this IPO is to raise funds mainly for project research and development. Geling Shentong stated in the prospectus that in the future, the company will pay more attention to strategic investment in the direction of application scenarios, and the proportion of R&D investment in operating income will continue to remain at a relatively high level, without being affected by unprofitable profits